HDFC Bank Shares Rise After $1.75 Bn Overseas Bond Fundraise

Shares of HDFC Bank traded higher in early deals on Friday, after the private-sector lender raised $1.75 billion through senior unsecured bonds from its GIFT City branch, marking its biggest overseas fundraise since the global financial crisis in 2008.

The HDFC Bank stock was trading at ₹728 in early trade, up 0.41%. The gains came even as the broader market remained largely flat. At 9:23 am, the Sensex was down 57 points, or 0.07%, at 77,480.51, while the Nifty 50 slipped 10 points, or 0.04%, to 24,221.45. Market breadth remained positive, with 1,584 shares advancing against 1,194 declines.

Strong Investor Demand For Overseas Bonds

HDFC Bank said on August 20 that the $1.75-billion fundraise comprised a dual-tranche issuance from its GIFT City branch.

The lender raised $500 million through three-year bonds and another $1.25 billion through five-year bonds. The three-year notes carry a coupon of 5.159%, while the five-year bonds offer a coupon of 5.401%, with interest payable semi-annually.

Both tranches are scheduled to settle on August 26. The three-year bonds will mature on August 26, 2029, while the five-year notes will mature on August 26, 2031.

The three-year bonds carry pricing guidance of 88 basis points over US Treasuries, while the five-year bonds carry guidance of 100 basis points over US Treasuries.

The fundraising comes as several Indian lenders have tapped overseas debt markets amid the Reserve Bank of India's concessional swap window for external commercial borrowings, available until the end of the year. IDFC First Bank recently raised $500 million through overseas bonds, while Kotak Mahindra Bank raised around $650 million through its debut issuance of five-year bonds.

LIC Approval Adds To HDFC Bank Focus

The bond issuance also comes after another development involving HDFC Bank this week.

On August 19, the RBI approved Life Insurance Corporation of India's proposal to acquire an aggregate holding of up to 9.99% of HDFC Bank's paid-up share capital or voting rights.

LIC held 4.11% of HDFC Bank's total share capital as of August 14. The regulatory approval therefore gives the state-owned insurer scope to raise its holding further, subject to applicable regulatory requirements.

HDFC Bank had reported a standalone net profit of ₹19,059.72 crore for the April-June quarter of FY27, up 4.98% from a year earlier. Net interest income increased 6.7% year-on-year to ₹33,535.95 crore.

The bank's net interest margin stood at 3.26% on total assets and 3.40% based on interest-earning assets. Gross non-performing assets stood at 1.17% of gross advances as of June 30, compared with 1.15% at the end of March and 1.40% a year earlier. Net NPAs stood at 0.41% of net advances.

HDFC Bank Stock Down 26% In 2026

Despite Friday's early gains, HDFC Bank shares have remained under pressure this year. The stock is down 26% year-to-date, compared with a 7% decline in the benchmark Nifty 50.

The stock hit a 52-week low of ₹715.10 on August 19 and a 52-week high of ₹1,020.50 on October 23 last year.

On a monthly basis, HDFC Bank shares are down 2.5% so far in August, following a 6% decline in July.